Sector News

Ineos breaks into US oil and gas

February 25, 2023
Energy & Chemical Value Chain

Ineos, the petrochemicals group controlled by the British billionaire founder Sir Jim Ratcliffe, who has recently tabled a bid to buy Manchester United football club, has announced that it had entered the US oil and gas production market for the first time with the acquisition of a portion of Chesapeake Energy’s oil and gas assets in the Eagle Ford shale, south Texas for $1.4 billion.

The deal marks Ineos Energy’s entry as operator into the US market, as it acquires 2,300 wells, producing net 36,000 barrels of oil equivalent per day.

The acquisition, which includes production and exploration leases across 172,000 net acres, is expected to complete in the second quarter of the year.

Ineos Group is a global petrochemicals manufacturer, operating on 194 sites across 29 countries, generating $65 billion annually and employing more than 26,000 people.

Ineos Energy, which was established in 2020, oversees the group’s portfolio of energy-related businesses, which includes exploration and production, as well as trading of oil and gas.

The company’s exploration and production activities focus on onshore and offshore oil and gas assets in the North Sea, in the UK and Denmark. In recent years, it has also has made investments in low-carbon technologies, including carbon capture and storage, and hydrogen.

Brian Gilvary, chairman of Ineos Energy, said, “The deal marks our entry into the US market and is another significant step in the Ineos Energy journey.

“Over the last two decades, US onshore oil and gas production has provided security of supply for the global market and competitive advantage for US industry.

“We believe this acquisition will help us to serve our internal and external customers today as we continue to position our business to meet the energy transition.”

by Robert Miller

Source: thetimes.co.uk

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